The NDUS fiscal year ends on June 30th. Each year, the System Office and the State Auditors’ Office will send by email a list of items with due dates needed for the close process, preparation of the financial statements and the annual audits. It is important that all items be submitted by the due dates. Note: The lists below are not necessarily all- inclusive of year-end close actions. There may be required actions specific to your campus. Additional items relative the year-end close may be required by the NDUS System Office. Any such items will be included in the year-end close communications sent to the campus controllers prior to the close and during the close process.
Before Year-End
o Verify all prior year audit adjustments have been recorded in the general ledger.
o Complete the inventory of equipment with an original cost in excess of $5,000 in compliance with NDCC 44-04-07.
Notification to employees about existence of Fraud Hotline and verify all employees have completed annual fraud awareness training.
o Notify departments of year-end cut-off dates.
o Drawdown funds for expenditures incurred as of June 30th.
o Prepare and send out billings to other campuses for grant expenditures and other amounts due, if applicable.
o Ensure any billings to foundations have been completed.
o Run Accounts Receivable Aging & GL Recon Reports in the Student Finance module of PeopleSoft. The reports are NDU_0126_SF and NDU_0136_SF. THESE REPORTS MUST BE RUN AT THE END OF BUSINESS ON JUNE 30TH. THEY WILL NOT BE ACCURATE IF THEY ARE RUN ON ANOTHER DATE.
o Run preliminary SNP and SRECNP’s:
o Verify that beginning net position in SRECNP agree to the prior years’ final audited ending net position.
o Verify that current year ending net position in SRECNP agree to current year net position in SNP
o Verify that all funds have an attribute assigned by running NDU_GL72_FUND_MISSING_ATTRIBS
o Determine if your campus has derivative instruments enduring the year by reviewing GASB Statement Number 53. If derivative instruments exist, contact the NDUS Director of Financial Reporting.
o If land or other real estate was held as an investment by endowments in the current year, review GASB Statement Number 52 and contact the NDUS Director of Financial Reporting.
o Centers of Excellence funds cannot have a deferred revenue balance at June 30th.
o Fund balances in scholarship funds that are not restricted must be reclassified to unrestricted fund balance.
Year-End Entries
• Complete all journal entries that apply to your campus. The year-end entries are
also available on the NDUS website at:
http://www.ndus.edu/employees/accounting-manual-forms. You may also have
additional adjustments that are specific to your campus.
• Close June Period in the Actuals ledger in PeopleSoft whenever entries made after June 30th are made. Navigation in PeoplesSoft is: Setup Financials/Supply Chain/Business Unit Related/General Ledger/Open Periods/Open Period Update.
• By June 30th of each year, the System Office will inform the campuses of the deadline to close the general ledger . No entries to the actuals, full accrue or consol ledgers should be made beyond that point without first contacting the NDUS Director of Financial Reporting.
• Other Additions/Deductions (715015) - should net to zero, between the actuals and fullaccrue ledgers.
• Full Accrue Adjustments: The following accounts should net to zero between the actuals and fullaccrue ledgers after fullaccrue adjustment F5 and F6 are made. These accounts in the actuals ledger are for the principal payments on debt and they are netted out by the reduction of the payable in fullaccrue.
581030 – Equipment – Capital Lease-Prin 581040 – IT Equip-Capital Lease-Prin
582050 – Building Capital Lease - Princ 582055 – Land Capital Lease - Principal 701010 – Bond Principal Pymts
701020 – Notes Payable – Principal Pymt 683055 – Special Assessment Principal
• Cash
o Classify Money Market accounts as Cash and not as Investments
o Review cash accounts to be sure that amounts are properly classified as restricted and unrestricted.
• Investments
o Review restricted investments to ensure amounts do not exceed the amount allowed by bond indentures plus an amount allowed for principal and interest since last payment date to June 30th. For example, if a bond payment was made on April 1st, it is acceptable to have 3/12 of the principal and interest amount as restricted plus the amount allowed by the bond indentures.
o Review investment accounts to be sure that amounts are properly classified as current (unrestricted) and non-current (restricted and endowments).
• Receivables
o Accounts Receivable Non-Student: Record MN Reciprocity Receivable in account 124003. Amounts will be sent to Controllers by the NDUS System Office by June 30th.
o Grants Receivable: Verify that all grants receivables have been properly recorded as of June 30th. Record accounts receivable and revenue for grants and contracts, other than advance pay grants.
o Notes Receivable/Loans Receivable: Reclass current portion from non- current using the following accounts:
• Notes Receivable Current – 125002/126002 Non-Current – 125102/126102 • Due from CU Current – 131001 Non-Current – 131051 • Inventory
o Verify year-end inventory count processes have been completed and adjust inventory balances in the general ledger to actual counts.
• Capital Assets & Intangibles:
o The amounts in the > $5,000 Equipment accounts in the actuals ledger need to equal the amount in the equipment additions account in the fullaccrue ledger after the equipment additions entry has been made. Review capital asset accounts (59xxxx series) to ensure items are properly classified as capitalizable/not capitalizable. In addition, review other general ledger accounts where potentially capitalizable assets may have been recorded and make necessary journal entries. Run Depreciation Calculations and make necessary adjustments to record depreciation expense. Verify and record any gain/loss on disposal of fixed assets.
o The amounts in the Capitalized plant improvement accounts (capitalized repairs and capitalized expenditures) in the actuals ledger need to equal the amount in the plant improvement additions (bldgs, land, CIP, etc) accounts in the fullaccrue ledger after all improvements have been capitalized. Verify that capital projects that are to be capitalized have ALL expenses capitalized and those that are not have all expenses as NonCapitalized.
o Verify that intangible assets have been properly capitalized, in accordance with GASB 51.
o The transfer column in the Capital Assets & Intangibles template must net to zero.
o Retainage Payable: Tie out Retainage Payable to construction project documents and make necessary entries
• Other Assets
o Due to/Due from Other State Agencies: Verify that your campus’ Due to/Due From CU’s agree with the CU financial statements. Review payables and receivable for any due to/from Other State Agencies - and record appropriate entries.
o Prepaids: Record any applicable prepaid expenses in account 142002.
• Liabilities
o Vacation and Sick Leave Liability: Record vacation and sick leave liability. To determine liability run query
NDU_BN_CAFR_COMP_ABS_10P_SICK_LV for sick leave accrual and NDU_ BN_CAFR_COMP_ABS_VACATION for vacation leave. Record the current portion to account 233002-Compensated Absences- Current. Record the non-current portion to account 233102-Compensated Absences-NonCurrent
o Early Retirement/Severance Liability: If applicable, calculate early retirement/severance liability. System Office will provide discount rate.
o Retirement Contributions Liability: Adjust Retirement Payable to actual. Run query ndu_ca_ret_tot_by_pypd to obtain totals.
o Long-term Liabilities: Reclass current portion from non-current to current using the following accounts:
Bonds Payable Current – 230002 Non-Current – 230102 Notes Payable Current – 231002 Non-Current – 231102 Capital Leases Payable
Current – 232002 Non-Current – 232102 Special Assessments Payable
Current – 205001 Non-Current – 205101 Long-term Debt Payable to CU
Current – 230005 Non-Current – 231105 Accounts Payable to CU Current – 230005 Non-Current – 231105 Interest Payable Current – 203001 Non-Current – 203101
o Interest Payable – Accrue interest payable on bonds, notes and capital leases.
o Bond Discount/Premium: Record amortization of Bond Discount/Premium.
o Unspent Bond Proceeds: If significant bond proceeds are not spent, the portion of the net asset fund balance in the investment in plant fund should be transferred to the unexpended plant fund.
The calculation is as follows: Capital Assets
Add bond issue costs and prepaid expenses in funds 00001-00019
Less depreciation Less long term debt
Less unamortized bond premium Less interest payable
Add debt portion of any unspent bond proceeds (since that debt doesn’t not have a related capital asset yet, the unspent portion needs to be added back in)
o If fund balance in debt service fund exceeds amount needed for debt service payments, reclass excess to unrestricted net position.
• Income
o Endowment Income: Account 442015 – Endowment Income-Non Operating - should include only endowment and land grant income.
o Interest Income – Loans: Account 442030 – Interest Income – Loans should include only loan fund interest. All other interest income should be coded to 442035 – Interest Income-Non Operating. Loan fund interest is included as other operating income on the SRECNP.
o Pell Revenues and all non-exchange grants & contracts: Reclass revenue as nonoperating revenue crediting account 450020-Federal G&C Non Operating. This includes Pell Grants SEOG, and TEACH grants and any other non-exchange grants & contracts. FSEOG grants should be classified as non-operating revenue.
o Tuition Waivers: Reconcile Employee Tuition Waivers in account 516020 to query NDU_0040_SF.
o Scholarship Allowance: Calculate Scholarship Allowance and record the appropriate journal entry.
o Auxiliary Revenue allocation: Automated process that allocates balances in auxiliary funds that have non-auxiliary account codes and non- auxiliary funds using auxiliary account codes as well as eliminates interdepartmental revenue. Contact Nicci Strand at [email protected] or Robin Putnam at [email protected] for instructions.
o Reclass capital gifts from gifts accounts: Review 478005-Gifts and 478007-Gifts from Related Foundations. Reclass capital gifts included in these accounts to 478010-Capital Gifts or 478015-Capital Gifts from Related Foundations.
Interest Expense - Account 641005 – Interest Expense - should not include interest on capital debt. Capital debt interest should be recorded in 683060, 701005, 701015 or 581025. Interest on capital debt is a separate line in the SRECNP.
o Grants: Verify that indirect grant expenses are not included in grant funds.
o State Capital Appropriations: Verify that State Capital Appropriations are not included in Capital Grants and Gifts or State Appropriations.
o Unspent General Fund Capital Asset Appropriation: At the end of each biennium, verify that unspent general fund capital asset appropriation is removed from revenue and due from general fund.
o Bad Debt Expense Reclass – in the FullAccrue ledger, reclass the
amounts recorded to account 621065-Bad Debt Expense to the appropriate revenue account, such as tuition, auxiliaries, grants and contracts or other.
• Other:
o Prepare Semi-Annual Budget Report. System Office will send template and due dates.
NDUSREQUESTED FORMS AND INFORMATION (STATEMENTS/SI,NOTES,COMPONENT
UNITS,ELIMINATIONS,OMBCAFR)
Note: The list of templates required is subject to change at any time. The NDUS Director of Financial Reporting will inform campuses by email of any changes.
• The following year-end templates will be housed in Sharepoint. Please ensure that you have the access to Sharepoint. If you cannot access Sharepoint, contact the NDUS Director of Financial Reporting.
o Advances from BND
o Asbestos designation
o Asset impairment disclosure
o Pledged revenues
o Capital Assets and CIP
o Commitments
o Beginning net asset restatement
o Early retirement statistics
o Flood damage
o Donor restrictions on endowments
o NDSLSC collection fees (NDSU only)
o On-behalf payments
o State Transfers
o Connect ND fee
o Subcontracts
• The following templates and statements are generated in PeopleSoft financials. They are run in the PS System and the appropriate manual updates/inputs are made by each campus individually. The completed schedules are then sent by email to the NDUS Director of Financial Reporting.
o Deposits
o Investments
o Statement of Net Position (SNP)
o Statement of Revenues, Expenses and Changes in Net Position (SRECNP)
o Statement of Cash Flows
• The following templates will be emailed to the campus Controllers from the NDUS Director of Financial Reporting in June.
o Scholarship Allowances
o All component unit templates
• Complete all templates listed on the request list, unless they are designated only for certain campuses. If certain templates are not applicable to your campus, please send an email to Robin Putnam at [email protected] with a list of non-applicable items.
• The templates include instructions or notes to aid you in preparation. Several templates also contain edit checks. Please input the applicable amounts in the purple shaded boxes and make sure that the edit check has a status of “Yes” or a zero difference. The template is not considered complete if there are outstanding differences. If you have questions, please email [email protected].
• Completed templates should be updated in Sharepoint, unless they are templates that were emailed to you outside of Sharepoint. For those template, send to the Director of Financial Reporting at [email protected]. If you know you will not meet certain deadlines, contact the Director of Financial Reporting as soon as possible. Send the requested schedules only (unless noted otherwise), but have backup available for the OSA.
• Things to keep in mind when preparing templates and statements:
o Beginning net position in SRECNP should equal PY ending net position.
o Ending net position in SRECNP should equal net position in SNP.
o Ending cash in Cash Flow Statement should equal unrestricted and restricted cash in SNP.
o Depreciation and amortization expense per the Cash Flow Statement should equal depreciation expense in SRECNP.
o Depreciation and amortization expense in Cash Flow Statement should equal the total additions to accumulated depreciation and amortization in the capital assets template.
o Total of the Functional Expense report should equal Total Operating Expense in SRECNP.
o Total Operating Income (Loss) on Cash Flow should equal Total Operating Income (Loss) per the SRECNP.
o CIP template should equal the CIP amount reflected in the capital asset template.
o Consult the Credit Risk Worksheet for proper classification when completing the investment template
o Reflect ALL deposits and CD’s in the Bank of North Dakota as uninsured in the deposit template
BEGINNING BALANCES
• Some templates include beginning balance figures. These need to tie to the prior year ending balances reported in the NDUS consolidated financial statements.
PSACCOUNTS
• A chart of accounts is located at http://www.ndus.edu/employees/accounting- manual-forms/.